What is a mission statement (and how to write one)

When starting a small business, you’ll need a plan to get things up and running. A major component of your business plan is a mission statement that summarises your intentions and shows people who you are.

But what is a mission statement, you might ask, and how can you write one for your business? We’ve got some answers for you.

This guide covers mission statements for business, including:

• What is a mission statement?
• Why is a mission statement important to business?
• How can you write a mission statement for your business?

What is a mission statement?

A mission statement outlines the purpose and intentions of an organisation. The statement explains what products or services your business offers, how it functions, and what you hope to achieve.

On top of that, it covers the main values and goals of your business and who you can help. You might also touch upon how your operations aid the community or world.

A good mission statement is:

• Action-oriented
• Goal-focused
• Clear
• Concise

Generally, this statement provides an overview of your business's key aspects and drives.

Why is a mission statement important to business?

A mission statement is a critical element of your business plan. It summarises the basic and essential elements of your business. A clear mission steers you in the right direction as you start and grow your business.

Who might benefit from your mission statement?

• Potential investors – the mission statement shows that you’ve put thought into your new business and provides an argument for why people should invest in it.
• Potential partners – if you want to work with other businesses or form partnerships, your mission statement will show people if your business aligns with their purpose.
• Potential customers – if you share your mission statement widely and use it in marketing, people can better understand your business and why they should choose you.
• You – this statement gives you a clear motivation for your business and helps you make crucial decisions as you set up and grow.

How can you write a mission statement for your business?

Now that you know what a mission statement is, you can write one for your business. Let’s go over the main steps.

Step 1: compile the essential information for a mission statement

Before you can write your statement, you’ll need to compile important information about your business. Here are a few questions to ask yourself.

Who are you?

Consider what your business provides to customers, including:

• The purpose of your company
• The market it falls in and what niche you focus on
• The products and services you offer
• The location and format – do you have a shop or run things remotely?

On top of this, list the qualifications that prepared you to run these operations. For example, you may have earned a degree or ten years of industry experience.

Why did you start this business?

What made you want to start this business and offer these products or services? Consider your story, background, and passions that make you a good fit for this business.

Aside from this, outline your unique selling point that sets your business apart. Then, establish a common pain point that your business aims to solve.

While you brainstorm the ‘why’ of your business, also try listing three core values that drive your operations and three concrete goals that drive you. For example, you might prioritise sustainability, integrity, and quality.

Who is your business for?

Think about your target audience, or the people you’ll help most with your business. Knowing this can show you what tone to use in the statement, so it speaks to this audience.

You could also mention who your business is for and how you meet their specific needs or solve their problems.

Step 2: Write the statement

Once you have these notes on your business, you can put them together into a mission statement.

Aim to write a statement that is 1-3 sentences and under 100 words.

If it’s too long, it’ll lose impact. But be sure to include clear, active, and accessible language to avoid vagueness and promote clarity.

It may sound challenging considering all the information we covered in step one. But the statement will condense these ideas to the most important elements.

Once you’ve written it, ensure the grammar and spelling are correct with a tool like Grammarly.

Examples

What does a good mission statement look like? It is helpful to look at examples that can guide you in writing yours.

• LinkedIn – “The mission of LinkedIn is simple: connect the world’s professionals to make them more productive and successful.”
• PayPal – “To build the web’s most convenient, secure, cost-effective payment solution.”
• Patagonia – “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

Step 3: Implement the statement

When you’ve got your mission statement written, you can put it to work and make sure it guides your business.

Apart from adding the statement to your business plan, post it publicly. You might want to include it on your business website's ‘About’ page. Then, consider using it as the bio for your social media accounts.

Making your statement accessible can help you grow awareness for your business.

How can you use your mission statement to grow your business?

With this guide, you can create your own mission statement to set your business up for success. The statement will offer a clear path forward and help you make vital decisions based on your values.

Writing a mission statement is essential to developing your new business. But when it’s time to open the doors, you might want to check out our article on how to write a new business announcement.

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